Research commissioned by electricity provider Electricity4Business found that almost one in five small firms are spending more than 10% of their annual turnover on energy costs, leaving them with considerable financial headaches.

 

Many business owners believe they cannot devote time to shopping around for alternative suppliers, but Utility Options removes this hassle by hunting for the best deal on behalf of smaller businesses. Its Managing Director, Colin Beake, believes that many of the FPB's members are paying much more per year than they need to for their energy supplies.

 

"Electricity and gas supplies are always on tap, so most businesses make the excuse that they are too busy to get to grips with the problem, and push the action needed to the bottom of the pile," he said. "They can use us to shop around and we will do the hard work for them."

 

A further 22% of smaller companies are forced to spend between 5% and 10% of their annual turnover on energy costs. Utilities bills have now become the second biggest expense for companies, behind spending on staff wages and recruitment and ahead of premises, equipment and insurance costs.

 

All of the major energy suppliers have increased their prices over the last year. Many small firms will resent paying more for their utilities, given research commissioned by the gas and electricity watchdog, Energywatch, which showed they were dissatisfied with the service provided by the six big electricity suppliers.

 

None of the big electricity companies received even a ‘satisfactory' rating in a survey of more than 2,400 small firms across the UK carried out in 2006 by research agency Accent.

 

Inaccurate billing, infrequent meter readings, a lack of information, slow responses to complaints, pressure from suppliers, and the apparent lack of skills and experience displayed by their staff were among the key issues for smaller firms. Of those respondents who were dissatisfied with their bills, over half cited inaccuracy as their primary concern, with estimated meter readings the main culprit. Rectifying these mistakes was another major issue, with 58% indicating they were unhappy with the complaints processes of their utility providers.

 

The utilities watchdog Ofgem is investigating soaring prices in the utilities market and will publish an initial report before the end of September 2008.

 

David Neal, of Spiders Social and Snooker Club in Bexleyheath, Kent, saved more than £500 per year on his electricity bill thanks to Utility Options.

 

"I am over the moon with the service. £500 is a lot of money and I'd rather it was in my pocket than that of one of the utilities companies," he said. "I've also made savings on my gas bill, so it has been really worthwhile."

 

For more information on how Utility Options can save businesses money, contact the FPB's member helpline on 0845 130 1722. Alternatively, email utilities@fpb.org.